Q16 · Practice questionSimple familiar1 mark
QUESTION 16
Which government outlay is a transfer payment?
(A)
A payment for a new government-owned bridge.
(B)
The salary of a public-school teacher.
(C)
A purchase of medical equipment.
(D)
An income-support payment to an eligible unemployed person.
WORKED SOLUTION
1 markAnswer D
Answer
D
Working
A transfer redistributes income without the government receiving current goods or services in exchange. The other examples purchase labour, capital or equipment.
Marking criteria
- Select D. [1 mark]
Practice question aligned to the current QCAA syllabus; review the worked solution and marking criteria.
View the QCAA syllabus